Global Glyoxylic Acid Market Continue to Surge amid Reviving Demand

During the initial half of May 2024, the global Glyoxylic Acid market experienced a significant escalation. This price surge can be attributed to several influences, particularly the fluctuating prices of raw materials like Nitric Acid ammonia. These persistent price fluctuations, observed throughout this period, were coupled with a resurgence in demand from downstream sectors, particularly the cosmetics and haircare industries. The increased demand from these sectors exerted significant upward pressure on the costs associated with Glyoxylic Acid. The cosmetics and haircare industries have seen a revival in consumer interest, driven by new product launches and a heightened focus on personal care, further intensifying the demand for Glyoxylic Acid.

During the initial half of May 2024, the European Glyoxylic Acid market experienced a noteworthy price escalation . The elevated price and shortage of essential raw material, nitric acid, within Europe prompted heightened production rates, consequently exerting upward cost pressure on Glyoxylic Acid prices. This escalation in prices can be primarily attributed to a resurgence in demand, exacerbated by a shortage of available material within the domestic market, as indicated by reports during this timeframe.

Furthermore, the demand for Glyoxylic Acid persisted, fuelled by the summer season demand in the cosmetics and haircare market. Various surveys show a significant surge in sales for leading players in the western market, surpassing a consensus of more than 6%. Notably, L'Oreal, the world's largest beauty company, reported sales growth of over 12% in both North America and Europe, with its mass market range and dermatological products offsetting weakness in the luxury segment. The European cosmetics giant, which owns brands like Maybelline and Lancôme, reported sales of 11.24 billion euros ($11.98 billion) for the first three months ending in March, with expectations of further growth.

Similarly, the Asian Glyoxylic Acid market observed a modest increment in prices during the specified period. This increase was exacerbated by a shortage of material within the Indian market, driven by a lack of imported cargoes from China. Despite manufacturing units within the country operating at a healthy rate, domestically produced Glyoxylic Acid fell short of meeting the reviving demand. This modest resurgence in demand was fueled by the summer season demand in the cosmetics and haircare market. Surveys have revealed a significant surge in sales for leading players in the Asian market, with L’Oréal registering a month-on-month increase of over 50%, Head & Shoulders with a 68.7% rise, and Lancôme experiencing a surge of more than 50%.

These amplified sales of cosmetic products have consequently stimulated the demand for Glyoxylic Acid, a crucial ingredient in various cosmetic formulations. The interplay of raw material shortages, increased production costs, and robust demand from the cosmetics sector has significantly impacted the Glyoxylic Acid in the Global market, driving prices upward during this period.